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Claims in construction projects (in general)

Category: Business & Management Paper Type: Report Writing Reference: APA Words: 1700

                    According to the author Zaneldin (2005), Claims in the construction projects, in general, are inevitable while the result is the costly litigation of construction contract, overly restrictive terms, plus the allocated risks. There are factors that increase the likelihood of conflict among the parties in the claims of construction projects. Construction claims are the disruptive claims in projects. By the minimum profits, to bid the plans, there is a high competition for the contractors when it comes to the maintenance of businesses. The Claim is a straightforward term that can be defined as the compensation request for the damages which are incurred through any party for the contract. For a reason or two in the construction industry, the claims are happening everyday, which could contribute the delaying projects and increasing the cost. This happens for a time extenion and additional expenses of construction. The contractor should understand the leading causes of the claims for the improvement of the success chances, as well as required enough information when the applications are submitted. Claims of construction in projects from the perspective of the contractors face the risks of multitude. Inflation, accidents, severe shortages of material, and unforeseen conditions are some examples of risks. All these types of risk have Monterey consequences, which might be harmful to the profitability of contractors. In general, Claims of construction projects, the contractor might create a variation regarding these risks, project scheduled along with the methods (Zaneldin , 2005).

  Claims in construction projects (Saudi Arabia)

            According to the author Husein, (2013) there are various claims in the construction projects in Saudi Arabia. The largest exporter of oil in the world is Saudi Arabia. The construction sector of Saudi Arabia has seen the necessary increases in activity, where the economy of Saudi Arabia is also on the rise. There are following trends in the claims of the construction projects. By the growing Saudi infrastructures, the government of Saudi Arabia is actively concerned and its indication presents the concern that remains at the forefront of the decision making of Saudi Arabia. In Saudi Arabia, the focus of the government is to increase the growth as the population increases. In the construction industry of Saudi Arabia, the claims are the primary sources. Through various participants of the projects, the applications in the construction projects are considered as one of the most disruptive events. Development ambition is a large part of Saudi Arabia, where the infrastructure of the construction is in the form of various other commercials, as well as medical projects. Claim of Construction in projects in Saudi Arabia is considered as one of the most important economic sectors, as well as uniqueness to this sector is a diversity of experiences along with the complexity with a number of other areas, making it more sensitive to variations in an economic activities along with social as well as demographic factors. Claims of the Construction industry in Saudi Arabia is a dynamic, complex, and fragmented process together with the traditional methods while the systems of construction industry use technology in isolation along with there are miss integration as well as non-interoperability among all Architecture (Husein, 2013).

  Claims Classification

            According to the author Khekale &et al. (2015), the classification of the claims are given below. These claims are classified through the related parties, rightly claimed, characteristic of claim, and the legal basis (Khekale & et.al, 2015)

Contractual of Claim in Construction Industry

            By the specific clauses of a contract, the Contractual Claim falls within provisions which are that are well accepted by the standard and entitle for the employers as well as contractors to claim the appropriate compensations for examples the ground conditions, variations, and valuation along with the delay in the inspecting of the finished work (Khekale & et.al, 2015)

Extra- Contractual of Claim in Construction Industry

        The Extra-Contractual Claim has no specific contacts within the ground, where the results of these form of the breaches contracts might be expressed and implied. Extra Contractual claims permit tithe owner that has ordered to the contractor for doing some works often after construction. As a part of his responsibility but not included in the original contract, while contractor performance work should be as mentioned through contract documents. However, a contractor believes that he is performing extra Contractual.(Khekale &et.al, 2015)

Ex-Gratia of Claim in Construction Industry

        There is no exiting of ground in the contract as well as in law, but the beliefs of the contractors have the rights for the moral grounds in the Ex-Gratia Claim. The additional cost is incurred when the results are rapidly increasing the prices (Khekale & et.al, 2015).

Extension of Time of Claim in Construction Industry

            The last classification of the claim is the extension of the claims, wherein this claims each construction contracts specifies the date for the contractors to complete their work. Through the Employer for the creation of delays, the purpose of specifying the date is to facilitate it form the damages (Khekale & et.al, 2015).

Causes of Construction of Claim in Construction Industry

        According to Hadikusumo &et al. (2015), it is conducted that there are various causes of the construction claim. Geneses of various claims often lie document of contract that is observed to the tenders hastily created as well as sufficient attention. In the general condition of the provision, there are no contradictions and the drawing (Hadikusumo &et.al, 2015).

Incorrect Ground Data of Claim in Construction Industry

        Incorrect Ground Data involves the information regarding the depth conditions, where the groundwater table, temperature, rainfall and the power of the availability of the water. The contractor estimation is based on the ground data, the documents of the tender provide that by depending upon the project size. Claims in construction project includes several situations where the Incorrect Ground Data directs the contractor to perform work that is various from work defined in a contract. For both changes as well as variation orders that happened on a construction project the probability of claims arise which conflict on the total cost of the project as well as a delay in the completion date

Ambiguous Provisions and Use of Faulty or Language in Contracts

        Vague Provisions for the use of the faculty as well as the contractor’s languages must be explicit, and it could open the floodgate for the possible litigations. The time of the absences is very appropriate for the provision handle that is a technical inspection through the client as well as for the third parties.

Deviations of Claim in Construction Industry

            A Deviations contract may permit a contractor to claim default when payment is not made accordance with a contract (Hadikusumo &et.al, 2015) says that delay in payments is a common problem especially during a time of economic crisis. (Hadikusumo & et.al, 2015)Showed that late payments through an owner come in fifth place out of ten major causes affecting construction delay in terms of cost, but come in second place in terms of impact on time for Deviation.

Unreasonable Attitudes of Claim in Construction Industry

            Unreasonable Attitudes of the Contractors are ordinarily expected to perform their works efficiently as well as have the high productivity without interference, in case owner interference in all events, a claim of interference will increase Unreasonable Attitudes according to that. (Hadikusumo & et.al, 2015)

Contractor Being of Poor Means of Claim in Construction Industry

            A contractor constructs a project with detailed plans as well as specifications provided in contract documents by the poor means. Through several weakness in the written contract will produce confusion along with disruption to the contractor while a contractor cannot deviate from a specification prepared through the owner unless knowing about defects or oversight.

(Hadikusumo & et.al, 2015)

  Causes of construction claim related to the owner of Claim in Construction Industry

        According to the author Shah &et al.(2014), various causes occur in the construction industry where the parties are mostly converted into the claims. Through either party of the contract, the construction claims are defined by request (Shah & et.al, 2014).

Delay caused by the owner of Claim in Construction Industry

Delays in a construction project are scheduled and cause huge losses of resources while aggravation is an everyday occurrence. Delay through the owner comes as a result of conditions of an existing facility, which should provide proper site access or facility that are made as a part of a contract work that differs in their location sometimes when an owner directly responsible for providing materials and furnished equipment.

Delay in terminations of Claim in Construction Industry

        During a construction project, some causes may happen which lead to terminate a contract that leads to a conflict for owner or contractor directly. Shah &et al.(2014), says that in a case of contractor default or on behalf of convenience, an owner decides that a facility is no longer needed. During either case, a contract should address the part’s rights in the event of termination.

Bad Coordination and Communication between Parts of Claim in Construction Industry

        Most of the claims as several types of research recognized, is due to lack of communication as well as coordination interface construction in a design phase. These lack lead to difficult access to the working area as well as conflicts in the requirements of various parts during constructions (Shah &et.al, 2014).

References of Claim in Construction Industry

Hadikusumo, B. H., &etal. (2015). Construction Claim Types and Causes for a Large-Scale Hydropower Project in Bhutan. Journal of Construction in Developing Countries, 20(1), 49–63.

Husein, A. (2013). Construction and projects in Saudi Arabia: an overview.

Khekale, C., &etal. (2015). Management of Claims and Disputes in the Construction Industry. International Journal of Science and Research (IJSR), 4(5), 848-856.

Shah, A., &etal. (2014). Types and Causes of Construction Claims. International Journal of Engineering Research & Technology (IJERT), 3(12), 732-735. Retrieved from https://www.ijert.org/research/types-and-causes-of-construction-claims-IJERTV3IS120582.pdf

Zeldin , E. (2005, September 9). Construction claims in the united Arab emirates: types, causes, and frequency. In Khosrowshahi, F (Ed.), 21st Annual ARCOM Conference, 2, 813-22.

 

 

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